Monday, February 18, 2008

ThyssenKrupp scouts for Indian JV partner

German component giant ThyssenKrupp is understood to be looking for a buyer or a JV partner for one of its global crankshaft facilities and major Indian component players such as Mahindra & Mahindra, Bharat Forge and Amtek have been sounded out on the possible transaction.

But the deal size, which is likely to be around the range of $500 million or Rs 2,000 crore may be a concern, said sources. ThyssenKrupp owns a crankshaft business in the US as well as in Europe. An email query to ThyssenKrupp went unanswered. Hemant Luthra, president, Systech, and a member of the M&M board, said: “We look out for every opportunity to increase share value and exploit synergy.” According to Bharat Forge CMD Baba Kalyani, “I don’t think the crankshaft facilities are up for sale and I am not entering into any JV with ThyssenKrupp”. The decision to look for a buyer/partner for its crankshaft business is part of a larger strategy by Thyssen Krupp to sell some of its automotive assets. The German giant recently sold off its precision forging business to Sona Okegawa for an undisclosed amount. As a matter of fact, some sources in the auto industry says ThyssenKrupp is also looking at selling its overall forging business.

Read More

No comments: